Dividend Policy

DIVIDEND POLICY AND ITS EFFECT ON STOCK PRICE -A report of listed companies at NSE India 1.INTRODUCTION: synopsis Dividend policy always re swell the controversial fall out for the research, especially in the sphere of finance yet the straits whether dividend policy affects the stock prices or non is still rest unsolved for many years. Dividend policy end is wholeness of the tether decisions of financial management because it affects the financial structure, the flow of funds, corporate liquidating and investors attitudes. The main aspect of dividend policy is to desexualise the amount of earning to be distributed the shareholder and the amount to be takeed in the firm. Divined policy involves the decision to pay out earning versus retaining them for re enthronement in the firm. The relationship between dividend and the entertain of the share is not clear cut. The financial manager moldiness understand the mixed conflicting factors which influence the divi dend policy ahead deciding the storage allocation of its companys earnings into dividends and retain earnings. Woolridge (1982) defined dividend as recompenses made by business to their shareholders. It is the diffusion of the business young profit to its owners and also a bribe for investing in a business.

Dividend policy is equally Copernican for managers and investors, as investors remove to plan return on their investment portfolio. Dividends are not only a source of income for investors but also betoken of company performance. It is important for corporate finance managers of the companies for payi ng dividend and do investment in new(preno! minal) companies. So selecting a fit dividend policy for a company is one of the most important decisions for the management and investor. It is well recognized that, Dividend is the service of earnings, which is distributed among the shareholders. In other words, dividend policy determines the division of earning between payment to shareholders and retained earnings. Retained...If you fate to get a full essay, put it on our website: OrderCustomPaper.com

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